World milk production changes little between 2021 and 2023

Cow Milk

Brazil

Published Jan 25, 2024

Tridge summary

Global milk production has seen a marginal growth over the past three years, with a projected increase of 1.3% in 2023, primarily driven by Asia. The production costs have surged globally due to the Covid pandemic and regional conflicts, while the demand for dairy products has been weak. In 2022, the world produced 758 million tons of cow's milk, a third of which came from Asia, with India and China being major contributors. Brazil's milk production has plateaued, leading to a record trade deficit of US$1 billion in 2023. Despite a slight decrease in production costs in 2023, the price paid to producers also dropped, affecting profitability. However, both international and domestic prices are anticipated to increase in 2024.

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Original content

World milk production has increased little in the last three years: 1.8% in 2021; 1.1% in 2022; and 1.3% estimated for 2023. The latter, driven by Asia, as there was no growth in exporting regions. In 2022 there was a general increase in production costs around the world, with an increase of 20% for concentrated food, 51% for fertilizers and 107% for energy. The Covid pandemic and the emergence of regional conflicts brought an environment of extreme uncertainty and inflation. Global demand for dairy products grew by just 0.8%, equivalent to population growth. In 2023, global demand for dairy products remained weak, with a reduction in Chinese imports and a drop in the price of dairy products. Only at the end of the year was there a small recovery in prices, but still below US$ 0.40/kg of milk, as a reference for the average global price of milk paid to producers, according to the IFCN. In regions traditionally important for milk production and exports such as the European Union, ...

Source: NoticiasAgricolas